- Fourth quarter revenues of $63.3 million, net of non-cash warrants impact of $4.3 million
- Fourth quarter GAAP operating loss of $16.7 million; non-GAAP operating loss of $9.9 million, net of non-cash warrants impact of $4.3 million
- Solid peak season; Consumables and services revenues up for the fourth quarter and full year
- Key 2023 focus areas include returning to profitability, successfully launching Apollo, and scaling KornitX
- Long-term growth drivers firmly intact as supply chain turmoil in the textile industry continues
ROSH-HA`AYIN, Israel, Feb. 15, 2023 (GLOBE NEWSWIRE) -- Kornit Digital Ltd. (“Kornit” or “the Company”) (Nasdaq: KRNT), a worldwide market leader in sustainable, on-demand, digital fashionX and textile production technologies, reported today results for the fourth quarter and full year ended December 31, 2022.
“A solid peak season drove fourth quarter growth in consumables and services revenues,” said Ronen Samuel, Kornit’s Chief Executive Officer. “There is no doubt that 2022 was a very difficult year for us, our customers and the global fashion and textile industry. We took decisive actions throughout the year to adjust operations to reflect market conditions and are positioning ourselves to return to sustainable, profitable growth.”
Mr. Samuel concluded, “In 2023 we will focus on three key areas including: returning to profitability; successfully launching the Apollo and scaling KornitX. We believe Kornit continues to be best positioned to lead the retail supply chain transformation of the fashion and textile industry, enabling us to meaningfully scale the business and achieve our long-term financial objectives.”
The following table compares the adverse, non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the fourth quarters of 2022 and 2021, respectively:
Fourth Quarter Warrants Impact
| Three Months Ended | ||||||||
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| Net of Warrants Impact | Warrants Impact | Net of Warrants Impact | Warrants Impact | |||||
| Revenue | $63.3M | $4.3M | $87.5M | $7.9M | ||||
| Non-GAAP Gross Margin | 36.4% | 4.1% | 49.6% | 4.1% | ||||
| Non-GAAP Operating Margin | (15.7%) | 7.4% | 5.8% | 7.8% | ||||
| Non-GAAP Net Margin | (10.4%) | 7.1% | 7.3% | 7.6% | ||||
| Non-GAAP Diluted Earnings (Loss) Per Share | ($0.13) | $0.09 | $0.13 | $0.16 | ||||
The following table compares the adverse, non-cash impact that the Company’s outstanding warrants had on the Company’s results of operations during the full-years 2022 and 2021, respectively:
Full-Year Warrants Impact
| Year Ended | ||||||||
| December 31, | ||||||||
| 2022 | 2021 | |||||||
| Net of Warrants Impact | Warrants Impact | Net of Warrants Impact | Warrants Impact | |||||
| Revenue | $271.5M | $22.5M | $322.0M | $25.4M | ||||
| Non-GAAP Gross Margin | 38.2% | 4.7% | 48.2% | 3.8% | ||||
| Non-GAAP Operating Margin | (15.4%) | 8.8% | 9.4% | 6.6% | ||||
| Non-GAAP Net Margin | (12.0%) | 8.6% | 11.2% | 6.5% | ||||
| Non-GAAP Diluted Earnings (Loss) Per Share | ($0.65) | $0.45 | $0.74 | $0.52 | ||||
"I am pleased to have a more active role with the Company and be part of this journey to transform the textile industry,” said Lauri Hanover, Kornit’s Chief Financial Officer. “In the fourth quarter, we started to realize benefits from the actions taken to adjust our business operations to the current market dynamics. We will continue to reallocate resources to higher ROI projects that further position the Company for sustainable, long-term, profitable growth.”
Fourth Quarter 2022 Results of Operations
- Total revenue for the fourth quarter of 2022 was $63.3 million, net of $4.3 million attributed to the non-cash impact of warrants, compared to $87.5 million, net of $7.9 million attributed to the non-cash impact of warrants in the prior year period.
- GAAP net loss for the fourth quarter of 2022 was $35.4 million, or ($0.71) per basic share, compared to net income of $1.0 million, or $0.02 per diluted share, for the fourth quarter of 2021.
- Non-GAAP net loss for the fourth quarter of 2022 was $6.6 million, or ($0.13) per basic share, net of $0.09 per basic share attributed to the non-cash impact of warrants, compared to non-GAAP net income of $6.4 million, or $0.13 per diluted share, net of $0.16 per diluted share attributed to the non-cash impact of warrants, for the fourth quarter of 2021.
Full-Year 2022 Results of Operations
- Total revenue for the full-year 2022 was $271.5 million, net of $22.5 million attributed to the non-cash impact of warrants, compared to $322.0 million, net of $25.4 million attributed to the non-cash impact of warrants in the prior year period.
- GAAP net loss for the full-year 2022 was $79.1 million, or ($1.58) per basic share, compared to net income of $15.5 million, or $0.32 per diluted share, for the full-year 2021.
- Non-GAAP net loss for the full-year 2022 was $32.6 million, or ($0.65) per basic share, net of $0.45 per basic share attributed to the non-cash impact of warrants, compared to non-GAAP net income of $36.1 million, or $0.74 per diluted share, net of $0.52 per diluted share attributed to the non-cash impact of warrants, for the full-year 2021.
First Quarter 2023 Guidance
For the first quarter of 2023, the Company expects revenues to be in the range of $47 million to $52 million and adjusted EBITDA margin between -27% to -35% of revenue. The guidance for revenue and adjusted EBITDA margin includes the impact of the non-cash expense associated with the fair value of the Company’s warrants. Prior to this period, the Company had not included such impact in its guidance and has changed its prior practice to align better with its reported metrics.
Fourth Quarter and Full-Year 2022 Earnings Conference Call Information
The Company will host a conference call today at 8:30 a.m. ET, or 3:30 p.m. Israel time, to discuss the results, followed by a question-and-answer session with the investor community.
A live webcast of the call can be accessed at ir.kornit.com. To access the call, participants may dial toll-free at 1-877-407-0792 or 1-201-689-8263. The toll-free Israeli number is 1-809-406-247. The conference confirmation code is 13735879.
To listen to a replay of the conference call, dial toll-free 1-844-512-2921 or 1-412-317-6671 (international) and enter confirmation code 13735879. The telephonic replay will be available approximately three hours after the completion of the live call until 11:59 pm ET on Wednesday, March 1, 2023. The call will also be available for replay via the webcast link on Kornit’s Investor Relations website.
About Kornit Digital
Kornit Digital Ltd. (NASDAQ: KRNT) is a worldwide market leader in sustainable, on-demand, digital fashionx and textile production technologies. The Company is writing the operating system for fashion with end-to-end solutions including digital printing systems, inks, consumables, and an entire global ecosystem that manages workflows and fulfillment. Headquartered in Israel with offices in the USA, Europe, and Asia Pacific, Kornit serves customers in more than one hundred countries and states worldwide. To learn more about how Kornit Digital is boldly transforming the world of fashion and textiles, visit www.kornit.com.
Forward Looking Statements
Certain statements in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and other U.S. securities laws. Forward-looking statements are characterized by the use of forward-looking terminology such as “will,” “expects,” “anticipates,” “continue,” “believes,” “should,” “intended,” “guidance,” “preliminary,” “future,” “planned,” or other words. These forward-looking statements include, but are not limited to, statements relating to the Company’s objectives, plans and strategies, statements of preliminary or projected results of operations or of financial condition and all statements that address activities, events, or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. The Company has based these forward-looking statements on assumptions and assessments made by its management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Important factors that could cause actual results, developments and business decisions to differ materially from those anticipated in these forward-looking statements include, among other things: the duration and severity of current adverse macro-economic headwinds being caused by supply-chain delays, inflationary pressures, and rising interest rates, which have been impacting, and may continue to impact, in an adverse manner, the Company’s operations, financial position and cash flows, in part due to the adverse impact on the Company’s customers and suppliers; the Company’s degree of success in developing, introducing and selling new or improved products and product enhancements including specifically the Company’s Poly Pro and Presto products; the extent of the Company’s ability to consummate sales to large accounts with multi-system delivery plans; the degree of the Company’s ability to fill orders for its systems; the extent of the Company’s ability to increase sales of its systems, ink and consumables; the extent of the Company’s ability to leverage its global infrastructure build-out; the development of the market for digital textile printing; the availability of alternative ink; competition; sales concentration; changes to the Company’s relationships with suppliers; the extent of the Company’s success in marketing; and those additional factors referred to under “Risk Factors” in Item 3.D of the Company’s Annual Report on Form 20-F for the years ended December 31, 2021 and December 31, 2022, filed with the SEC on March 30, 2022, and to be filed with the SEC in the coming weeks, respectively. Any forward-looking statements in this press release are made as of the date hereof, whether as a result of new information, future events or otherwise, except as required by law.
Non-GAAP Discussion Disclosure
The Company presents certain non-GAAP financial measures, in this press release and in the accompanying conference call to discuss the Company’s quarterly and annual results. These non-GAAP financial measures reflect adjustments to corresponding GAAP financial measures in order to exclude the impact of the following: share-based compensation expenses; amortization of intangible assets; acquisition related expenses; restructuring expenses; foreign exchange differences associated with ASC 842; non-cash deferred tax expenses (income); and taxes attributed to tax settlement.
The Company defines “Adjusted EBITDA” as non-GAAP operating income (loss), which reflects the adjustments described in the preceding paragraph, as further adjusted to exclude depreciation expense.
The purpose of the foregoing non-GAAP financial measures is to convey the Company’s performance exclusive of non-cash charges and other items that are considered by management to be outside of the Company’s core operating results. These non-GAAP measures are among the primary factors management uses in planning for and forecasting future periods. Furthermore, the non-GAAP measures are regularly used internally to understand, manage, and evaluate the Company’s business and make operating decisions, and the Company believes that they are useful to investors as a consistent and comparable measure of the ongoing performance of the Company’s business. The Company’s non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with the Company’s consolidated financial statements prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ materially from the non-GAAP financial measures used by other companies.
The reconciliation tables included below present a reconciliation of our non-GAAP financial measures to the most directly comparable GAAP financial measures.
In order to enable investors to compare our Adjusted EBITDA and other non-GAAP financial results for the three-month and full-year periods ended December 31, 2022 presented herein with our corresponding results for prior periods, the Company has included herein reconciliation tables of our GAAP net income to adjusted EBITDA covering the following additional historical periods: each quarter of the years ended December 31, 2022 and 2021; and each of the years ended December 31, 2022, 2021, and 2020.
Investor Contact:
Andrew G. Backman
Global Head of Investor Relations
andrew.backman@kornit.com
| KORNIT DIGITAL LTD. | ||||||
| AND ITS SUBSIDIARIES | ||||||
| CONSOLIDATED BALANCE SHEETS | ||||||
| (U.S. dollars in thousands) | ||||||
| December 31, | December 31, | |||||
| 2022 | 2021 | |||||
| (Unaudited) | (Audited) | |||||
| ASSETS | ||||||
| CURRENT ASSETS: | ||||||
| Cash and cash equivalents | $ | 104,597 | $ | 611,551 | ||
| Short-term bank deposit | 275,033 | 9,168 | ||||
| Marketable securities | 20,380 | 28,116 | ||||
| Trade receivables, net | 67,360 | 49,797 | ||||
| Inventory | 89,415 | 63,017 | ||||
| Other accounts receivable and prepaid expenses | 22,054 | 13,694 | ||||
| Total current assets | 578,839 | 775,343 | ||||
| LONG-TERM ASSETS: | ||||||
| Marketable securities | $ | 245,970 | $ | 149,269 | ||
| Deposits and other long-term assets | 5,927 | 856 | ||||
| Severance pay fund | 274 | 357 | ||||
| Deferred taxes | - | 9,339 | ||||
| Property,plant and equipment, net | 60,463 | 45,046 | ||||
| Operating lease right-of-use assets | 27,139 | 25,155 | ||||
| Intangible assets, net | 9,890 | 10,063 | ||||
| Goodwill | 29,164 | 25,447 | ||||
| Total long-term assets | 378,827 | 265,532 | ||||
| Total assets | $ | 957,666 | $ | 1,040,875 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES: | ||||||
| Trade payables | $ | 14,833 | $ | 46,448 | ||
| Employees and payroll accruals | 14,255 | 22,482 | ||||
| Deferred revenues and advances from customers | 5,701 | 5,401 | ||||
| Operating lease liabilities | 4,989 | 5,058 | ||||
| Other payables and accrued expenses | 25,592 | 17,287 | ||||
| Total current liabilities | 65,370 | 96,676 | ||||
| LONG-TERM LIABILITIES: | ||||||
| Accrued severance pay | $ | 1,223 | $ | 1,543 | ||
| Operating lease liabilities | 21,035 | 21,900 | ||||
| Other long-term liabilities | 1,216 | 1,203 | ||||
| Total long-term liabilities | 23,474 | 24,646 | ||||
| SHAREHOLDERS' EQUITY | 868,822 | 919,553 | ||||
| Total liabilities and shareholders' equity | $ | 957,666 | $ | 1,040,875 | ||
| KORNIT DIGITAL LTD. | |||||||||||||||
| AND ITS SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (U.S. dollars in thousands, except share and per share data) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
| Revenues | |||||||||||||||
| Products | $ | 49,795 | $ | 75,955 | $ | 222,502 | $ | 282,637 | |||||||
| Services | 13,503 | 11,593 | 49,016 | 39,369 | |||||||||||
| Total revenues | 63,298 | 87,548 | 271,518 | 322,006 | |||||||||||
| Cost of revenues | |||||||||||||||
| Products | 29,026 | 34,273 | 125,935 | 132,730 | |||||||||||
| Services | 12,923 | 10,888 | 49,083 | 37,365 | |||||||||||
| Total cost of revenues | 41,949 | 45,161 | 175,018 | 170,095 | |||||||||||
| Gross profit | 21,349 | 42,387 | 96,500 | 151,911 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development, net | 13,251 | 12,993 | 56,026 | 43,729 | |||||||||||
| Sales and marketing | 16,150 | 18,036 | 71,067 | 58,752 | |||||||||||
| General and administrative | 8,657 | 11,665 | 39,289 | 36,637 | |||||||||||
| Total operating expenses | 38,058 | 42,694 | 166,382 | 139,118 | |||||||||||
| Operating income (loss) | (16,709 | ) | (307 | ) | (69,882 | ) | 12,793 | ||||||||
| Financial income (expenses), net | 5,052 | (36 | ) | 13,382 | 2,599 | ||||||||||
| Income (loss) before taxes on income (tax benefits) | (11,657 | ) | (343 | ) | (56,500 | ) | 15,392 | ||||||||
| Taxes on income (tax benefits) | 23,703 | (1,297 | ) | 22,565 | (135 | ) | |||||||||
| Net income (loss) | (35,360 | ) | 954 | (79,065 | ) | 15,527 | |||||||||
| Basic net income (loss) per share | $ | (0.71 | ) | $ | 0.02 | $ | (1.58 | ) | $ | 0.33 | |||||
| Weighted average number of shares | |||||||||||||||
| used in computing basic net | |||||||||||||||
| income (loss) per share | 49,913,898 | 47,778,868 | 50,104,342 | 47,079,358 | |||||||||||
| Diluted net income (loss) per share | $ | (0.71 | ) | $ | 0.02 | $ | (1.58 | ) | $ | 0.32 | |||||
| Weighted average number of shares | |||||||||||||||
| used in computing diluted | |||||||||||||||
| net income (loss) per share | 49,913,898 | 48,926,240 | 50,104,342 | 48,600,095 | |||||||||||
| KORNIT DIGITAL LTD. | ||||||||||||||||||
| AND ITS SUBSIDIARIES | ||||||||||||||||||
| RECONCILIATION OF GAAP TO NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||
| (U.S. dollars in thousands, except share and per share data) | ||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||
| December 31, | December 31, | |||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||
| Revenues | $ | 63,298 | $ | 87,548 | $ | 271,518 | $ | 322,006 | ||||||||||
| GAAP cost of revenues | $ | 41,949 | $ | 45,161 | $ | 175,018 | $ | 170,095 | ||||||||||
| Cost of product recorded for share-based compensation (1) | (543 | ) | (355 | ) | (2,185 | ) | (1,355 | ) | ||||||||||
| Cost of service recorded for share-based compensation (1) | (408 | ) | (355 | ) | (1,676 | ) | (1,105 | ) | ||||||||||
| Intangible assets amortization on cost of product (3) | (266 | ) | (176 | ) | (1,402 | ) | (337 | ) | ||||||||||
| Intangible assets amortization on cost of service (3) | (160 | ) | (160 | ) | (640 | ) | (640 | ) | ||||||||||
| Excess cost of product on acquired inventory (2) | - | - | (663 | ) | - | |||||||||||||
| Restructuring expenses (4) | (305 | ) | - | (701 | ) | - | ||||||||||||
| Non-GAAP cost of revenues | $ | 40,267 | $ | 44,115 | $ | 167,751 | $ | 166,658 | ||||||||||
| GAAP gross profit | $ | 21,349 | $ | 42,387 | $ | 96,500 | $ | 151,911 | ||||||||||
| Gross profit adjustments | 1,682 | 1,046 | 7,267 | 3,437 | ||||||||||||||
| Non-GAAP gross profit | $ | 23,031 | $ | 43,433 | $ | 103,767 | $ | 155,348 | ||||||||||
| GAAP operating expenses | $ | 38,058 | $ | 42,694 | $ | 166,382 | $ | 139,118 | ||||||||||
| Share-based compensation (1) | (4,264 | ) | (3,454 | ) | (18,788 | ) | (12,673 | ) | ||||||||||
| Acquisition related expenses (2) | - | (766 | ) | (512 | ) | (960 | ) | |||||||||||
| Intangible assets amortization (3) | (138 | ) | (97 | ) | (501 | ) | (433 | ) | ||||||||||
| Restructuring expenses | (711 | ) | - | (992 | ) | - | ||||||||||||
| Non-GAAP operating expenses | $ | 32,945 | $ | 38,377 | $ | 145,589 | $ | 125,052 | ||||||||||
| GAAP Financial income, net | $ | 5,052 | $ | (36 | ) | $ | 13,382 | $ | 2,599 | |||||||||
| Foreign exchange losses associated with ASC 842 | 285 | 638 | (3,123 | ) | 336 | |||||||||||||
| Non-GAAP Financial income , net | $ | 5,337 | $ | 602 | $ | 10,259 | $ | 2,935 | ||||||||||
| GAAP Taxes on income (tax benefit) | $ | 23,703 | $ | (1,297 | ) | $ | 22,565 | $ | (135 | ) | ||||||||
| Non-cash deferred tax income (expenses) | (10,234 | ) | 581 | (10,014 | ) | (2,733 | ) | |||||||||||
| Non-recurring tax payment (a) | (11,485 | ) | - | (11,485 | ) | - | ||||||||||||
| Non-GAAP Taxes on income (tax benefit) | $ | 1,984 | $ | (716 | ) | $ | 1,066 | $ | (2,868 | ) | ||||||||
| GAAP net income (loss) | $ | (35,360 | ) | $ | 954 | $ | (79,065 | ) | $ | 15,527 | ||||||||
| Share-based compensation (1) | 5,215 | 4,164 | 22,649 | 15,133 | ||||||||||||||
| Acquisition related expenses (2) | - | 766 | 512 | 960 | ||||||||||||||
| Intangible assets amortization (3) | 564 | 433 | 2,543 | 1,410 | ||||||||||||||
| Restructuring expenses (4) | 1,016 | - | 1,693 | - | ||||||||||||||
| Excess cost of product on acquired inventory (2) | - | - | 663 | - | ||||||||||||||
| Foreign exchange losses associated with ASC 842 | 285 | 638 | (3,123 | ) | 336 | |||||||||||||
| Non-cash deferred tax expenses (income) | 10,234 | (581 | ) | 10,014 | 2,733 | |||||||||||||
| Non-recurring tax payment (a) | 11,485 | - | 11,485 | - | ||||||||||||||
| Non-GAAP net income (Loss) | $ | (6,561 | ) | $ | 6,374 | $ | (32,629 | ) | $ | 36,099 | ||||||||
| GAAP diluted earnings (loss) per share | $ | (0.71 | ) | $ | 0.02 | $ | (1.58 | ) | $ | 0.32 | ||||||||
| Non-GAAP diluted earnings (loss) per share | $ | (0.13 | ) | $ | 0.13 | $ | (0.65 | ) | $ | 0.74 | ||||||||
| Weighted average number of shares | ||||||||||||||||||
| Shares used in computing GAAP diluted net earnings (loss) per share | 49,913,898 | 48,926,240 | 50,104,342 | 48,600,095 | ||||||||||||||
| Shares used in computing Non-GAAP diluted net earnings (loss) per share | 49,913,898 | 49,163,475 | 50,104,342 | 48,836,435 | ||||||||||||||
| (1) Share-based compensation | ||||||||||||||||||
| Cost of product revenues | $ | 543 | $ | 355 | $ | 2,185 | $ | 1,355 | ||||||||||
| Cost of service revenues | 408 | 355 | 1,676 | 1,105 | ||||||||||||||
| Research and development | 1,340 | 875 | 5,312 | 2,685 | ||||||||||||||
| Sales and marketing | 1,693 | 1,354 | 7,361 | 5,005 | ||||||||||||||
| General and administrative | 1,231 | 1,225 | 6,115 | 4,983 | ||||||||||||||
| $ | 5,215 | $ | 4,164 | $ | 22,649 | $ | 15,133 | |||||||||||
| (2) Acquisition related expenses | ||||||||||||||||||
| Cost of product revenues | - | - | 663 | - | ||||||||||||||
| General and administrative | $ | - | $ | 766 | $ | 512 | $ | 960 | ||||||||||
| $ | - | $ | 766 | $ | 1,175 | $ | 960 | |||||||||||
| (3) Intangible assets amortization | ||||||||||||||||||
| Cost of product revenues | $ | 266 | $ | 176 | $ | 1,402 | $ | 337 | ||||||||||
| Cost of service revenues | 160 | 160 | 640 | 640 | ||||||||||||||
| Sales and marketing | 138 | 97 | 501 | 433 | ||||||||||||||
| $ | 564 | $ | 433 | $ | 2,543 | $ | 1,410 | |||||||||||
| (4) Restructuring expenses | ||||||||||||||||||
| Cost of product revenues | $ | 305 | $ | - | $ | 689 | $ | - | ||||||||||
| Cost of service revenues | - | - | 12 | - | ||||||||||||||
| Research and development | 137 | - | 201 | - | ||||||||||||||
| Selling and marketing | 487 | - | 675 | - | ||||||||||||||
| General and administrative | 87 | - | 116 | - | ||||||||||||||
| $ | 1,016 | $ | - | $ | 1,693 | $ | - | |||||||||||
| (a) | Attributed to tax settlement with the Israeli Tax Authority | |||||||||||||||||
| KORNIT DIGITAL LTD. | |||||||||||||||
| AND ITS SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||||||
| (U.S. dollars in thousands) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2022 | 2021 | 2022 | 2021 | ||||||||||||
| (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
| Cash flows from operating activities: | |||||||||||||||
| Net income (loss) | $ | (35,360 | ) | $ | 954 | $ | (79,065 | ) | $ | 15,527 | |||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||||||
| Depreciation and amortization | 4,399 | 2,151 | 13,565 | 7,096 | |||||||||||
| Fair value of warrants deducted from revenues | 4,339 | 7,855 | 22,500 | 25,423 | |||||||||||
| Share-based compensation | 5,215 | 4,164 | 22,649 | 15,133 | |||||||||||
| Amortization of premium and accretion of discount on marketable securities, net | 373 | 2,899 | 1,820 | 1,279 | |||||||||||
| Realized gain on sale and redemption of marketable securities | - | - | 10 | (32 | ) | ||||||||||
| Change in operating assets and liabilities: | |||||||||||||||
| Trade receivables, net | (3,673 | ) | 69 | (15,891 | ) | 1,782 | |||||||||
| Other accounts receivables and prepaid expenses | (2,501 | ) | (2,281 | ) | (8,635 | ) | (4,134 | ) | |||||||
| Inventory | (2,437 | ) | (10,314 | ) | (29,004 | ) | (14,079 | ) | |||||||
| Operating leases right-of-use assets and liabilities, net | 229 | 608 | (2,918 | ) | 211 | ||||||||||
| Deferred taxes | 11,523 | (198 | ) | 8,530 | (2,064 | ) | |||||||||
| Deposits and other long term assets | (1,859 | ) | (34 | ) | (4,251 | ) | (110 | ) | |||||||
| Trade payables | (9,068 | ) | 15,265 | (26,948 | ) | 12,865 | |||||||||
| Employees and payroll accruals | (2,222 | ) | 820 | (7,674 | ) | 9,698 | |||||||||
| Deferred revenues and advances from customers | 107 | (6,318 | ) | (1,426 | ) | (21,668 | ) | ||||||||
| Other payables and accrued expenses | (8,873 | ) | (4,831 | ) | 7,190 | 5,648 | |||||||||
| Accrued severance pay, net | 43 | 201 | (237 | ) | 309 | ||||||||||
| Other long - term liabilities | 330 | (496 | ) | 13 | 760 | ||||||||||
| Loss (gain) from sale and disposal of property, plant and Equipment | (142 | ) | - | 425 | - | ||||||||||
| Net cash provided by (used in) operating activities | (39,577 | ) | 10,514 | (99,347 | ) | 53,644 | |||||||||
| Cash flows from investing activities: | |||||||||||||||
| Purchase of property, plant and equipment | $ | (5,776 | ) | $ | (5,055 | ) | $ | (18,042 | ) | $ | (14,477 | ) | |||
| Investment in equity securities | (193 | ) | (351 | ) | (820 | ) | (351 | ) | |||||||
| Acquisition of intangible assets | (73 | ) | (130 | ) | (308 | ) | (130 | ) | |||||||
| Proceeds from sale of property, plant and equipment | - | - | 71 | - | |||||||||||
| Cash paid in connection with acquisition, net of cash acquired | - | - | (14,654 | ) | (14,991 | ) | |||||||||
| Investment in bank deposits | 85,089 | 231,935 | (265,865 | ) | 215,636 | ||||||||||
| Proceeds from sales and redemption of marketable securities | - | - | 1,945 | 1,000 | |||||||||||
| Proceeds from maturity of marketable securities | 6,500 | 4,222 | 27,898 | 13,526 | |||||||||||
| Investment in marketable securities | (8,135 | ) | (66,148 | ) | (137,500 | ) | (110,458 | ) | |||||||
| Net cash provided by (used in) investing activities | 77,412 | 164,473 | (407,275 | ) | 89,755 | ||||||||||
| Cash flows from financing activities: | |||||||||||||||
| Proceeds from public offering, net of issuance cost | $ | - | $ | 339,760 | $ | - | $ | 339,760 | |||||||
| Exercise of employee stock options | 159 | 709 | 619 | 4,850 | |||||||||||
| Payments related to shares withheld for taxes | (90 | ) | (573 | ) | (951 | ) | (2,235 | ) | |||||||
| Net cash provided by (used in) financing activities | 69 | 339,896 | (332 | ) | 342,375 | ||||||||||
| Increase (decrease) in cash and cash equivalents | 37,904 | 514,883 | (506,954 | ) | 485,774 | ||||||||||
| Cash and cash equivalents at the beginning of the period | 66,693 | 96,668 | 611,551 | 125,777 | |||||||||||
| Cash and cash equivalents at the end of the period | $ | 104,597 | $ | 611,551 | $ | 104,597 | $ | 611,551 | |||||||
| Non-cash investing and financing activities: | |||||||||||||||
| Purchase of property and equipment on credit | 1,692 | 2,461 | 1,692 | 2,461 | |||||||||||
| Inventory transferred to be used as property and equipment | 5,248 | 2,641 | 6,792 | 3,572 | |||||||||||
| Lease liabilities arising from obtaining right-of-use assets | 408 | 4,171 | 7,585 | 5,688 | |||||||||||
| KORNIT DIGITAL LTD. | |||||||||||||||||||||||||||||||||||||||||||
| AND ITS SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO ADJUSTED EBITDA | |||||||||||||||||||||||||||||||||||||||||||
| (U.S. dollars in thousands, except share and per share data) | |||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | Three Months Ended | Year Ended | |||||||||||||||||||||||||||||||||||||||||
| March 31, | June 30, | September 30, | December 31, | March 31, | June 30, | September 30, | December 31, | December 31, | |||||||||||||||||||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
| GAAP Revenues | $ | 83,293 | $ | 58,136 | $ | 66,791 | $ | 63,298 | $ | 66,123 | $ | 81,666 | $ | 86,669 | $ | 87,548 | $ | 271,518 | $ | 322,006 | $ | 193,331 | |||||||||||||||||||||
| GAAP Net Income (Loss) | (5,197 | ) | (19,476 | ) | (19,032 | ) | (35,360 | ) | 5,099 | 5,602 | 3,872 | 954 | (79,065 | ) | 15,527 | (4,783 | ) | ||||||||||||||||||||||||||
| Taxes on income (tax benefits) | 91 | (1,099 | ) | (130 | ) | 23,703 | 75 | 821 | 266 | (1,297 | ) | 22,565 | (135 | ) | 1,552 | ||||||||||||||||||||||||||||
| Financial expenses (income) | (1,799 | ) | (4,324 | ) | (2,207 | ) | (5,052 | ) | (2,065 | ) | (351 | ) | (219 | ) | 36 | (13,382 | ) | (2,599 | ) | (3,498 | ) | ||||||||||||||||||||||
| Share-based compensation | 5,298 | 5,481 | 6,655 | 5,215 | 3,072 | 3,827 | 4,070 | 4,164 | 22,649 | 15,133 | 10,036 | ||||||||||||||||||||||||||||||||
| Intangible assets amortization | 419 | 790 | 770 | 564 | 304 | 304 | 369 | 433 | 2,543 | 1,410 | 812 | ||||||||||||||||||||||||||||||||
| Acquisition related expenses | 512 | - | - | - | - | - | 194 | 766 | 512 | 960 | 648 | ||||||||||||||||||||||||||||||||
| Excess cost of product on acquired inventory | - | 369 | 294 | - | - | - | - | - | 663 | - | - | ||||||||||||||||||||||||||||||||
| Restructuring expenses | - | - | 677 | 1,016 | - | - | - | - | 1,693 | - | - | ||||||||||||||||||||||||||||||||
| Other | - | - | - | - | - | - | - | - | - | - | 451 | ||||||||||||||||||||||||||||||||
| Non-GAAP Operating Income (Loss) | (676 | ) | (18,259 | ) | (12,973 | ) | (9,914 | ) | 6,485 | 10,203 | 8,552 | 5,056 | (41,822 | ) | 30,296 | 5,218 | |||||||||||||||||||||||||||
| Depreciation | 2,161 | 2,532 | 2,494 | 3,835 | 1,188 | 1,239 | 1,541 | 1,718 | 11,022 | 5,686 | 3,899 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 1,485 | $ | (15,727 | ) | $ | (10,479 | ) | $ | (6,079 | ) | $ | 7,673 | $ | 11,442 | $ | 10,093 | $ | 6,774 | $ | (30,800 | ) | $ | 35,982 | $ | 9,117 | |||||||||||||||||
| Warrants Impact | 8,005 | 4,516 | 5,640 | 4,339 | 3,139 | 6,572 | 7,857 | 7,855 | 22,500 | 25,423 | 5,366 | ||||||||||||||||||||||||||||||||
| Adjusted EBITDA, ex. Warrants Impact | $ | 9,490 | $ | (11,211 | ) | $ | (4,839 | ) | $ | (1,740 | ) | $ | 10,812 | $ | 18,014 | $ | 17,950 | $ | 14,629 | $ | (8,300 | ) | $ | 61,405 | $ | 14,483 | |||||||||||||||||
